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NARP Energy Portfolio Director Rick Van Schoik travelled to University of Texas at Brownsville (UTB) and Matamoros, Tamaulipas last week to talk about the “U.S.- Mexico Border Economy in Transition” report, to develop an understanding of binational innovation clusters there with United Brownsville, and also to discuss borders of the world yesterday, today, and tomorrow at the UTB Comparative Borders Conference. He spoke about failed states and their borders, those borders fractured by military aggression, those becoming more fixed, those still fuzzy, those, due to pressures, that are becoming more fluid and flexible, and finally those that are as open, or to continue the alliteration, freer. He then commented on what all this implied for North American sovereignty and borders. For example Mexico’s recent change to their constitution means law enforcement officers from the U.S can apply to carry weapons in the course of their duty, another way that the two nations have moved the border away from the border.

As work concludes on the new 177,000 square foot Canyon Vista Regional Health Center in Sierra Vista, Arizona, distinguished guests near and far are getting ready to celebrate its grand opening on April 23, 2015. The Canyon Vista Medical Center Mexico Reception will take place on Friday, April 10, 2015 from 5 to 7 p.m. at the Canyon Vista Medical Center in Sierra Vista, AZ.

Among those welcoming the opening of thestate of the art hospital are Mexican dignitaries, who recognize the benefits this medical center may reap for the U.S. – Mexico border region.

The new hospital will provide 100 beds (19 designated for adult psychiatry), state of the art technology and equipment, spacious inpatient and outpatient facilities, an outdoor dining area and a heliport servicing two helicopters. Not only will the hospital provide high quality care for residents of Sierra Vista, Fort Huachuca and Cochise County at large, but it will also be open to Mexican patients seeking high-quality medical care just north of the border.

Dr. Dean French, CEO of Canyon Vista Regional Health Center, affirms that the new hospital will expand healthcare options for the region at large and bring greater economic opportunities to the area. “We look forward to this new day in healthcare and strengthening the region by providing access to key services for our community and patients. The new medical center provides a one-stop shop for multiple medical practices that will include OB/GYN, pediatrics, internal medicine, cardiology, orthopedics, sports medicine and general surgery. Additionally, it will provide advanced wound care with hyperbaric oxygen, adult and pediatric rehabilitation, and chemotherapeutic infusion services. The consolidation of all of these services under one roof will drastically improve clinical integration and increase efficiency in care,” states French.

As Fort Huachuca—a major source of jobs for thousands of Sierra Vista residents—faces reductions in government funding, the city must find ways to diversify its economy and find viable economic alternatives to insure its sustainability. Mignonne Hollis, Sierra Vista Economic Development Foundation Executive Director, agrees that the hospital will provide greater economic opportunities for the region. “We see this as a beginning to our friendship with our neighbors down south and the chance to start a conversation about how to grow our local economies together,” says Hollis. Among other community leaders, she recognizes that one way to focus their economic development efforts is to strengthen its trade relations with Mexico and provide greater access to healthcare. The new opening of the Canyon Vista Medical Center provides the perfect opportunity to strengthen the transborder healthcare cluster in Sonora and Arizona.

As Arizonans work hard to rebuild our economy, a panel of experts gathers for a wide-ranging discussion examining the future of import-export trade between Arizona and Mexico, our largest international trading partner.

“The Arizona economy is recovering and learning from its mistakes, but it’s important to remember that one of state’s major assets is our neighbor to the south, its booming economy, and its long ties to Arizona business,” said Gonzalo A. de la Melena, Jr. President & CEO, Arizona Hispanic Chamber of Commerce.

The panel is hosted by Arizona Legislature’s Latino Caucus and Arizona Hispanic Chamber of Commerce. It is scheduled 9 to 10:15 a.m., April 2, at the Arizona State Capitol, Executive Tower, 2nd Floor Conference Room, 1700 West Washington, Street, Phoenix, AZ 85007.

“U.S.-Mexico trade is now valued at well over a half trillion dollars per year, 80 percent of which crosses the U.S.-Mexico land border. This trade supports around six million U.S. jobs, and systems of co-production in manufacturing allow companies to combine the comparative advantages of the United States and Mexico, boosting the competitiveness of North America as a whole.” Erik Lee and Christopher Wilson, Forbes Magazine, “How to Boost Border Competitiveness? Just Ask the Folks There.”

Some may think that the meeting between Presidents Obama and Pena Nieto this week served merely as the “other news” besides the Republicans taking control of both chambers of the Congress today. But the U.S. – Mexico relationship, actually much more strategic than most know, has timeliness such that the meeting was of more import and more critically timed than they might realize.

TRADE: NAFTA celebrates its 20th anniversary last year and has truly and overwhelmingly benefitted Fortune 500 companies. Yet most Americans still think NAFTA is a dirty word…largely because they haven’t seen the direct benefits to themselves. These include not just cheaper prices on commodities we import from Mexico like fresh new electronics and fresh produce but a trickle down of millions of jobs, many in services, from those multinational corporations that jointly manufacture advanced products for the world to consume. Mexico has more free trade agreements than any other nation meaning our jointly produced, high U.S. content exports benefit nearly every American.

ENERGY: The three North American energy ministers met late in 2014 as Mexico completes the implementation of its energy reform and as petroleum prices crashed worldwide. These all matter to the U.S.-Mexico relationship facilitating joint manufacturing that will benefit from the cheaper prices available to the entire North American manufacturing platform. At the same time the two nations are working collaboratively to eliminate both health-impacting criteria and greenhouse gases from fossil fuel mixes.

CUBA: The attempt by the U.S to re-establish ties with Cuba really has Mexico as a fulcrum and not just because Americans travel through Mexico to get to Cuba. The reality is that every south-looking allianceand liaison that Mexico has joined, Cuba has been a member and Mexico is the perfect “go- between” and exemplar for that budding relationship.

MIGRATION: The United States cannot ponder migration without consulting the donor nations and while Mexico is no longer the source of most migrants, it is the route that most migrants choose to arrive from those poorer nations. As such, consulting Mexico and looking at the highly successful Mexico-Canada migration accord which has been guiding their migration circularity for over a decade, is advised.

ECONOMICS But no relationship is more important than the economic relationship. So much so that Vice President Biden chairs the High Level Economic Dialogue between the two countries that is only now finding its feet. The meeting this week is only the second official get together in over a year and half of talking. With two years left of this administration many along the border are hoping trade, commerce, and business can continue to dominate the conversation.

SECURITY: But no conversation with Mexico is complete without considering corruption, crime, and violence. The United States has adopted an attitude of understanding the networks of transnational crime organizations to better share responsibility with Mexico to eliminate those supply chains for drugs, guns, and yes, even humans, who are trafficked.

NORTH AMERICA: As the three North American leaders prepare for their annual summit later this year, it was strategically important that U.S. and Mexico settle binational, bilateral, transborder issues before the three meet.

Sacramento, CA– Last week the Council of State Governments West’s Border Legislative Conference (BLC) unveiled to Mexican federal lawmakers and U.S. officials the executive summary of a report focused on the competitiveness of the U.S. – Mexico border region. The report, titled “The U.S. – Mexico Border Economy in Transition,” was developed by CSG West’s research partners – the Wilson Center Mexico Institute and the North American Research Partnership.

The executive summary presents key findings of the four regional economic competitiveness forums convened by the BLC this year at strategic locations along the U.S. – Mexico border region. The forums brought together federal and state lawmakers, high-ranking U.S. and Mexican officials, experts and local leaders from both countries to discuss the challenges and opportunities to improve the competitiveness of this region which serves as the “nerve center” of the bilateral relationship. The forums also provided an opportunity for border residents to offer their insights and recommendations of what governments and the business community can do to achieve actionable results that further innovation, job creation and prosperity of the region. Among the recommendations highlighted in the summary is the need to strengthen state binational institutions, promote crossborder urban planning, expand trusted traveler programs, enhance coordination among institutions of higher learning to improve work force development, and capitalize on energy development, particularly as Mexico implements its recently enacted energy reforms. The BLC will develop a legislative roadmap aimed at exchanging ideas and best practices that can help governments implement the recommendations in the report. The BLC will also be conducting visits to state legislatures along the U.S. – Mexico border in the coming months to present the findings of the report and policy roadmap.

“The report and its findings provide federal lawmakers in Mexico great insights to the tremendous economic growth between the U.S. and Mexico, and it also emphasizes the important role that states and local governments have to engage in the High Level Economic Dialogue established by the federal governments of both countries,” stated Senator Ernesto Ruffo Appel, chairman of the Commission of Northern Border Affairs in Mexico’s Federal Senate. “The U.S. and Mexican economies lose out on billions of dollars of economic growth each year as a result of congestion at the U.S.-Mexico border. This year, we met with government officials, business owners and residents along the border gathering their best ideas for how to improve border management and strengthen the border economy. If implemented, these recommendations will help the border region fulfill its potential as a motor of competitiveness and growth for the regional economy” stated Chris Wilson of the Woodrow Wilson Center Mexico Institute during testimony before the Commission of Northern Border Affairs in Mexico’s Senate.

“The work of the BLC and its research partners provides policy-makers of both countries with relevant data and analysis that our respective border communities can use to inform leaders of interior states within each country of the importance of the bilateral relationship and the interdependence of our economies” stated Diputado David Perez Tejada, member of the Northern Border Affairs Committee in Mexico’s Chamber of Deputies.

CSG West’s BLC delegation to Mexico City included Diputada Imelda Guadalupe De La Garza of Nuevo León current chair of the BLC, as well as staff from CSG West, the Woodrow Wilson Mexico Institute and the North American Research Partnership. A similar launch will be made in Washington, D.C. for U.S. federal lawmakers in late January 2015. The complete report will be available within the coming weeks. The executive summary can be viewed and downloaded at www.borderlegislators.org (or click Border_Economy_Transition_Wilson_Lee).

Dr. Peter Piot, one of the co-discoverers of the Ebola virus, sounded an alarm back in July warning that a “mega crisis” could occur unless response was comprehensive and swift enough. He was initially criticized for his strong reaction but said he “would rather be accused of overreacting.” He recently reaffirmed his warning, saying he was “on target.”

Now that Ebola is in Europe, I have to wonder how long it will be before politicians want to close the southern border if the virus shows up in the Americas. The Weekly Standard, Department of Defense News reported on Wednesday, “Marine Corps Gen. John F. Kelly, the commander of the U.S. Southern Command, fears that the self-evident ability of the American medical system to successfully cope with Ebola will lead millions of Central American residents to make refugees of themselves and head toward the United States.” Granted, we were caught flatfooted and about three months too late on preventing Ebola from arriving in the United States, but now that it is here and if it arrives in Mexico, then is it not the time to turn to our neighbors, instead of on our neighbors?

Lesson One: React and Respond ASAP to Recover Completely

With all the hysteria about ISIS coming across the southern border into the U.S. and the upped concern about a doubling contraction time of less than three weeks for Ebola in West Africa, perspective for if and when it shows up in Mexico is warranted. During the Influenza scare in Mexico, I remember flying freely from the U.S. to Canada and from the U.S to Mexico. Public safety officials’ concern was not so much who was coming into Mexico infected with influenza—as it had already arrived but rather who might have it and might spread it if they were to leave Mexico. All passengers were screened by an automated mass thermometer as we approached our gates. Those of us (and I was one) who had an elevated temperature (a possible early warning of infection) were asked by the technician to undergo a more thorough examination by a nurse and some of us (not me that time) were sent to a doctor. Indeed, some of us missed our flights and some were detained for treatment. This was a small inconvenience to pay for pandemic vigilance.

During the episode, all schools, many sporting events, and some businesses were closed by the Government of Mexico at a real cost to the nation of millions of dollars of lost productivity. Again, that was a relatively small price to pay early in the progression of steps to contain a contagious disease that did seem at the time either more transmittable or virulent or both. Today the U.S. owes Mexico a huge “¡Gracias!” for setting an example, even though nothing more serious than a normal flu season flu ensued. But seemingly for months, the origin was thought to be swine farms in southeastern Mexico. This proved to be false, but the misperception lingers even today.

Lesson two: Don’t accuse and not assist.

Neighbors look out for each other when their common health or any other security is involved. When former President Calderon flew to Japan over California and saw widespread wildfires, he immediately called then Governor Schwarzenegger to offer his firefighters. “Your state is on fire,” he said, “What can I do?”

I often wonder, given the extraordinarily wide charge given to Customs and Border Patrol (CBP) (the ones that clear you to fly when you come back to the U.S. from overseas, not TSA that clears you to fly within the U.S.), if we can expect them to monitor regular migration, drug and contraband trafficking, “first in nation” invasive as well as smuggled plants and animals, and other threats, whether we are asking too much for them to manage crowds of tourists and travelers while anticipating diseases symptoms at the same time. A more effective alternative may be for CBP to communicate and collaborate with their southern counterparts, to insure shared monitoring and equal prevention tactics.

The show must go on

While the necessary steps to prevent the spread of Ebola must be taken and lessons learned from Mexico’s reaction to the last public health scare, our southern border must continue with business as usual. Trade and tourism between the U.S and Mexico is too valuable to be jeopardized. Measured at over a half trillion (yes with a T) dollars annually, the two industries create and maintain millions of jobs here and there assuring mass net migration stays at zero. And, as important as the joint advanced manufacturing platform that the three NAFTA nations have built, trade and tourism allows North America to maintain its competitiveness on the world marketplace.

NARP board member Denise Moreno Ducheny was recently recognized by the Government of Mexico with the Ohtli Award, the highest recognition awarded by Mexico to U.S. citizens who have contributed in an exceptional manner to the development of the Mexican community abroad. Past recipients of this award include: President of the Educational Fund of NALEO, Arturo Vargas, Editor of “La Opinión” in Los Angeles, California, Mónica Lozano, President of the National Council of La Raza, Janet Murguía (2009), former Governor of New Mexico, Bill Richardson, and President of the Hispanic Leadership Institute, Dr. Juan Andrade Jr. (2010).

Denise Moreno Ducheny is a retired California senator from San Diego, serving in the state Assembly from 1994-2000 and then elected to state Senate in 2002. She will receive the award during the annual conference of the National Association of Latino Elected Officials later this month in San Diego. For additional information, please see click here to read the NALEO press release.

NARP congratulates Denise for her outstanding work and this much-deserved recognition.

NARP Portfolio Director Rick Van Schoik gave the opening keynote address at Stanford University’s Uncommon Dialogue: U.S.-Mexico Transboundary Water Issues conference June 1-June 3. Rick’s address, “Transborder Water Issues Governance (TWIG),” covered the basis of transborder water governance, including equitable utilization and shared benefits. He pointed out that society is only beginning to understand water’s true value and will continue to increase its appreciation for it under various global climate change (GCC) scenarios. He called out decision makers for ignoring water issues related to climate change, but affirmed that if sustainable, science-derived principles and insights are applied to the overall process, a water ethos that truly appreciates the resource at its essence may be adopted. To learn more, click here for Rick’s full presentation.

The conference was organized by the Bill Lane Center and the Water in the West Program at Stanford Law School and featured panels such as “Groundwater in the Frontier,” “Binational Water/Energy Nexus Issues: the California-Baja California region,” and “The Colorado River.” The overall takeaway was that food, water and energy are intricately connected and move beyond borders. To see a full list of panelists, please see the agenda. To view pictures, click here.

This past Friday we held the second of four U.S.-Mexico Regional Economic Competitiveness Forums (RECF) in Rio Rico, Arizona together with our partners, USAID Mexico, the Council of State Governments-West, the Border Legislative Conference and the Mexico Institute/Woodrow Wilson Center.

Similar to the California-Baja California RECF, the Arizona-Sonora-Sinaloa forum consisted of highly informative, interactive panels and afternoon break-out sessions, where both speakers and attendees participated in the sharing of insight/recommendations on the regional economy, ports of entry management and infrastructure planning and connecting the region to the global economy. Congressman Raúl M. Grijalva, U.S. House of Representatives and California State Senator Lou Correa, Chair of the Border Legislative Conference welcomed all participants with opening remarks, and the following panels proceeded:

Panel I: Challenges and Opportunities to Move People and Product Securely and Efficiently Along the Arizona – Sonora Border Region

Moderator: Luis Ramirez, President Ramirez Advisors Inter-National

Panelists:

Lance Jungmeyer, President, Fresh Produce Association of the Americas

Alfonso Soto Parada, President, Maquiladora Association of Sonora

William Brooks, Director of Field Operations, Tucson, U.S. Customs and Border Protection

In this panel, speakers discussed the importance of rethinking how the border affects supply chains (in terms of infrastructure, technology and human capital); stated the challenges of insufficient infrastructure/mismanagement of the border (stressing the costs of border crossing wait times); and highlighted the potential of the large Arizona-Sonora ports of entry as well as the smaller ones.

Panelists’ stated that what distinguishes the AZ-Sonora/Sinaloa region is agro-business (importing the most amount of fresh produce from Mexico through Nogales), the mining industry (especially with a growing global demand for copper) and aerospace (where tech parks are leading the way for further innovation).

Ana Luisa Fajer, addressed the audience at the luncheon, discussing Mexico’s Ministry of Foreign Affair’s commitment to the border region; in appreciation for the key role it plays in increasing economic competitiveness for the United States and Mexico. She explained the priorities of the U.S.-Mexico High-Level Economic Dialogue (HLED), including student exchange and collaboration through MUSEIC and FOBESSI. Fajer asserted that, “(we) should be thinking in North American terms: using education and innovation to allow us to be more competitive.” She ended her talk with recommendations to seek out:

This panel focused on the need for infrastructure, adequate staffing, and efficiency of border crossing for trade flows to run through.

Other distinguished participants included diplomats, business leaders and government officials, i.e.:

Mayor Arturo Garino, City of Nogales, Arizona

Mayor Douglas Nicholls, City of Yuma

Councilmember Reynaldo Gutiérrez, City of Nogales, Sonora

Representative Stefanie Mach, Arizona

Representative Victoria Steele, Arizona

Representative Macario Saldate IV, Arizona

Representative Rosanna Galbadon, Arizona

Our executive summary of the proceedings is forthcoming. Also, Linda Valdez, columnist at the Arizona Republic, referenced the forum in her article, “Seal the Border? No. Staff the ports!” To read the article, click here. Lastly, to view pictures of the event, please click here.

Thank you to all who worked with us to make this forum a success. We look forward to continuing the series in Texas. Please check back in with us for more detailed information regarding the Laredo and El Paso forums and consider joining us.

We are about to get underway here in Rio Rico for our second U.S.-Mexico Regional Economic Competitiveness Forum. As we head into summer, we have been reflecting upon how 2014 is shaping up to be an extremely interesting year in Arizona on the issue of international trade. It is remarkable to see a number of developments around the state coming together at more or less the same time. They include the following:

The City of Phoenix issued a request for proposals earlier this year for a trade development specialist to be based in Mexico City.

The state of Arizona also plans to open an office in Mexico City.

Tucson Mayor Jonathan Rothschild was just awarded the Ohtli award by the Government of Mexico.

The state’s associations of government are beginning discussions with mayors in northern Sonora on creating a “megaregion” modeled on the CaliBaja megaregion comprising San Diego, Tijuana, the Imperial Valley and the Mexicali area.

The Joint Planning and Advisory Council of the state of Arizona’s associations of government is promoting an idea to make the entire state of Arizona accessible to Mexican Border Crossing Card holders, rather than just area between the border and Tucson.

Discussions continue with ProMéxico (the trade and investment promotion agency for the Government of Mexico) on a potential presence in Arizona for the agency.

Taken together this is really quite a remarkable turn of events, when you consider where the state was in 2010 in the wake of the highly controversial SB1070.

Beyond its diplomatic challenges with Mexico, Arizona’s current round of engagement with Mexico is linked to a realignment of the state’s economic priorities following the Great Recession. Much of this engagement proceeds from the assumption that increased international trade has the potential to drive future high-value added economic activity and create more high-paying jobs for the state’s citizens.

Activity around trade in the state takes place largely on four distinct yet related planes. The first plane is with our neighbors, Sonora and Sinaloa, which Southern Arizona economic stakeholders in particular continue to cultivate as vital, go-to customers in terms of crossborder trade (shopping, fruit and vegetable distribution, real estate).

The second plane of trade engagement is currently developing, is more long-distance in nature and comprises a type of trade diplomacy with political leaders and federal agencies in Mexico City (which makes sense, as Mexico’s tendency toward centralization is strong in all matters, including economic matters).

The third plane of engagement is in its infancy and has to do with linking existing Arizona companies as suppliers to the rapidly developing automotive and aerospace clusters in Mexico’s Bajío region.

The fourth plane of engagement is almost fully conceptual at this point but consists in cultivating Mexican foreign direct investment (FDI) in Arizona as Texas has successfully done. Currently, Mexican FDI in Arizona is utterly minimal but real movement on that plane would be an indicator that the state has moved into a new era.

All of Arizona’s rethinking and repositioning on trade with Mexico–its leading commercial partner–is taking place as a host of other U.S. states and cities as well as other nations intensify their presence in Mexico as that country enters an amazing and really unprecedented phase in its history of rapid and far-reaching economic reforms and international engagement.

What this means is that Arizona can no longer rely on geography as a natural advantage and instead must move toward diversifying its trading and diplomatic approach with Mexico, one of the world’s most important economies. Arizona leaders also need to understand that their discourse and policies on immigration are and will continue to be fundamentally tied to issues of economic development and particularly trade diplomacy, by Mexican partners. The state needs a safe and efficient border with Mexico but that approach in and of itself will need to be contemplated with a broader vision of all that it means to be fully pursuing a deep and sustainable commercial relationship with one of the planet’s most important emerging economies.